Update on the latest average mortgage rates from Freddie Mac and the Mortgage Bankers Association for the week ending 8-4-2012…
It is time once again my Saturday blog post about the average mortgage rates reported by Freddie Mac and the Mortgage Bankers Association:
Freddie Mac Reported:
- 30-year fixed-rate mortgages averaged 3.55% with an average 0.7 point
- This is up from last week when 30-year fixed-rate mortgages averaged 3.49%
- Last year at this time, 30-year fixed-rate mortgages averaged 4.39%
- 15-year fixed-rate mortgages this week averaged 2.83% with an average 0.6 point
- This is also up from last week when 15-year fixed-rate mortgages averaged 2.80%
- A year ago at this time, 15-year fixed-rate mortgages averaged 3.54%
The Mortgage Bankers Association Reported:
The average contract interest rate for 30-year fixed-rate mortgages with conforming loan balances ($417,500 or less) increased to 3.75% from 3.74%, with points increasing to 0.51 from 0.43 (including the origination fee) for 80% loan-to-value ratio (LTV) loans.
The average contract interest rate for 30-year fixed-rate mortgages with jumbo loan balances (greater than $417,500) increased to 4.01% from 3.99%, with points increasing to 0.32 from 0.28 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 30-year fixed-rate mortgages backed by the FHA remained unchanged at 3.52% from the previous week, with points increasing to 0.55 from 0.52 (including the origination fee) for 80% LTV loans.
The average contract interest rate for 15-year fixed-rate mortgages increased to 3.09% from 3.07%, with points increasing to 0.49 from 0.45 (including the origination fee) for 80% LTV loans.
The Take Away:
Are the days of super low mortgage rates ending? The continuing Eurozone credit crisis is being blamed for this slight increase. While the increases are small, we have to consider that it is possible that rates may increase even more in the coming months. Look at what Frank Nothaft, vice president and chief economist of Freddie Mac had to say this week:
Recent announcements of additional debt relief for the Eurozone and mixed domestic economic indicators added upward pressure on Treasury yields as well as mortgage rates this week. The U.S. economy grew at a 1.5 percent annualized rate in the second quarter, slower than the 2.0 percent growth in the first quarter with consumer spending in June unchanged from May.
We all know the economy is not where it needs to be. And yesterday’s jobs report was disappointing since the BLS reported the unemployment rate increased slightly. Buyers always need to consider that rates can go up OR down very quickly. The slight increase this past week might be the wake up call some need to finally take advantage of the current situation.
I am not saying that buyers should run out in a panic. But they should get serious about getting a home while mortgage rates are low. Change is constant. We don’t know that the average mortgage rates next week won’t be lower.
The fact that rates did go up is something all serious home buyers need to consider.
As always, I am providing this to you for informational purposes only! I am not a mortgage lender and you should contact the lender of your choice directly to learn more about its mortgage products and your eligibility for such products.